Consumer confidence tumbled in May but the markets opened sharply higher with the Dow leaping 153 points to 12,608 over speculation that China may announce additional stimulus measures. Nasdaq jumped 43 points to 2880.

Shares of Banco Santander (NYSE: STP) fell after the announcement of a $24 billion government bailout of Spain's third largest bank Bankia.

In the broad market, advancing issues outpaced decliners by a margin of more than 6 to 1 on the NYSE and by nearly 7 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks soared 10 points to 776.